8.P6, 200.00 debts bear interest at 8% compounded annually. It is to be repaid in annual payments of P1, 000.00 each. a. How many payments must the debtor make? (8.9) b. How much will be the final payment if it is made one year the last P1, 000.00 payments. (P906.27)

8.P6, 200.00 debts bear interest at 8% compounded annually. It is to be repaid in annual payments of P1, 000.00 each. a. How many payments must the debtor make? (8.9) b. How much will be the final payment if it is made one year the last P1, 000.00 payments. (P906.27)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

8.P6, 200.00 debts bear interest at 8% compounded annually. It is to be repaid in annual
payments of P1, 000.00 each.
a. How many payments must the debtor make? (8.9)
b. How much will be the final payment if it is made one year the last P1, 000.00
payments. (P906.27)

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